Correlation Between Austevoll Seafood and ScanSource
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and ScanSource at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Austevoll Seafood and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austevoll Seafood ASA and ScanSource, you can compare the effects of market volatilities on Austevoll Seafood and ScanSource and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Austevoll Seafood with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and ScanSource.
Diversification Opportunities for Austevoll Seafood and ScanSource
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austevoll and ScanSource is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Austevoll Seafood is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Austevoll Seafood ASA are associated (or correlated) with ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and ScanSource go up and down completely randomly.
Pair Corralation between Austevoll Seafood and ScanSource
Assuming the 90 days horizon Austevoll Seafood is expected to generate 2.57 times less return on investment than ScanSource. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.77 times less risky than ScanSource. It trades about 0.17 of its potential returns per unit of risk. ScanSource is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,120 in ScanSource on August 29, 2024 and sell it today you would earn a total of 740.00 from holding ScanSource or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. ScanSource
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ScanSource |
Austevoll Seafood and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and ScanSource
The main advantage of trading using opposite Austevoll Seafood and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, ScanSource can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ScanSource will offset losses from the drop in ScanSource's long position.| Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
| ScanSource vs. WisdomTree Investments | ScanSource vs. COMBA TELECOM SYST | ScanSource vs. Cellnex Telecom SA | ScanSource vs. CDL INVESTMENT |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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